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There is no single unique formula for calculating the return on investment in antiques; however, general financial principles can be applied. The simplest approach allows for a basic understanding of an investment's effectiveness.
| Component | Description |
| Return | (Profit / Investment Amount) * 100% |
| Profit | (Sale Price - Purchase Price) + Cash Payments |
| Investment Amount | Purchase price of the item |
There is no single unique formula for calculating the return on investment in antiques; however, general financial principles can be applied. The simplest approach allows for a basic understanding of an investment's effectiveness.
The basic formula for returns is as follows:
To illustrate, let's consider an example: an item was bought for 100 euros and sold for 120 euros. During the ownership period, an additional income of 5 euros was generated (for example, from exhibition fees). In this case, the return would be ((120 - 100) + 5) / 100 * 100% = 25%. This basic formula does not account for the time factor but provides a general understanding.
The idea of investing in objects of material culture originated in America after World War II. At that time, the population possessed many such items, and a need arose for their financial valuation.
This approach was supported at the state level. For example, when applying for a U.S. visa, it is necessary to declare not only deposits and real estate but also any antiques owned. This indicates that art objects are considered a full-fledged asset, on par with traditional forms of property.
As the market developed, a need arose for its analysis, an assessment of its role in the financial mechanism, and the systematization of pricing. This idea was adopted by leading auction houses, such as Sotheby's and Christie's, which created their own analytical departments.
In 1967, the auction house Sotheby's first released an index based on the analysis of sales across 30-40 thematic areas (painting, furniture, etc.) over several years. This index tracked sales dynamics, dividends, and value growth. In 1975, it was updated with new data but was not published in full to avoid market manipulation.
Currently, other reputable indexes also exist. For example, the French resource Artprice has been publishing its index since 1987, based on the analysis of 17,000 auctions worldwide and the opinions of 100 experts. It is important to understand that all these indexes are based on the analysis of past sales and are not forecasts for the future.
Today, the idea of investing in art is also supported by major financial institutions. Leading banks such as JP Morgan, Citibank, and Deutsche Bank offer their clients services for investing in objects of material culture.
These banks advise clients, assist with investments, and can provide loans secured by antiques. They work closely with experts, museums, and art galleries. However, the entry threshold for such services is quite high—for example, at Deutsche Bank, it starts at 100,000 euros.
In addition to banks, there are also specialized art funds. In Germany, to establish such a fund, at least 40% of its authorized capital must consist of tangible cultural objects. All this demonstrates the capitalization of the art market and its integration into the global financial system.
The value of an antique item is composed of several key components. Understanding these factors is fundamental to making an investment decision.
Four main components can be identified that form the final value:
The main profit in antique investing is established at the purchasing stage. Based on this, several rules for successful activity can be formulated.
Like any other investment, investing in antiques involves certain risks that must be taken into account.
New promising areas for investment are constantly emerging in the antiques market. One such area, which is just beginning to gain popularity, is historical photography.
Of particular interest are photographs related to major historical events, such as World War I and World War II. Images of combat, cities of that era, and other narrative photos will only increase in value over time.
It is not too late to enter this market segment. It is predicted that in a few years, a real boom in historical photography is expected, making it an attractive asset for long-term investment. However, as in other areas, there is also a risk of forgeries, so thorough expert evaluation is crucial.
